The Impact of Intellectual Capital on the Performance and Investment Attractiveness of Russian Companies

Abstract

Recent studies show that intellectual resources, such as highly qualified workforce, well-functioning business processes within the organization and strategic relationships with all stakeholders together give a synergistic effect and are key factors in creating a sustainable competitive advantage. This notion is true for both high-tech companies that are focused on knowledge management and mainly work in the service sector, as well as for traditional industrial-type firms that are focused on creating products using value chain models. The historical growth of intellectual capital is traditionally associated with the trend of increasing market capitalization of firms, which is most clearly observed for companies that use knowledge resources as core competitive advantage. However, in practice the consequences of investing in intellectual capital intensive firms are often not always clear, in particular, there is unambiguous relationship between intellectual capital and the ability of companies to perform sustainably. In this study proposes models to investigate the impact of the components of intellectual capital on investment attractiveness and therefore potential positive investment decisions for companies using financial indicators such as revenue and market share. The results show a moderate positive relationship between revenue, market share, reflecting the investment attractiveness of the company and qualitative indicators of static and dynamic intellectual capital. © Published under licence by IOP Publishing Ltd.